NATIVEBUSINESSMAG.COM | MARCH 2019 | $8.95
WHEN 19 PUEBLOS UNITE, OPPORTUNITY SOARS
MHA NATION RESISTS DUAL TAXATION
Mohegan Renewable Energy Keeps the Lights on in Europe
LANCE MORGAN
HO-CHUNK, INC.IS TRANSFORMING THE WINNEBAGO TRIBAL ECONOMY THE ROAD TO NOWHERE PROTECTING TRIBAL ECONOMIC ARMS DRONES FLY OVER PUEBLO OF POJOAQUE ALASKA LEADS THE WAY IN TELEMEDICINE
NATIVE NETWORK'S BOLD VISION OF INTERNET & PROSPERITY FOR ALL
FOUNDERS/PUBLISHERS
Gary (Cherokee) and Carmen (Makah/Chippewa-Cree/Yakama) Davis
EDITORIAL
Executive Editor Carmen Davis - carmen@nativebusinessmag.com Senior Editor Kristin Butler - kristin@nativebusinessmag.com
CREATIVE
Art Director Kym Tyler (Diné) Creative Consultant Vestalight Sevenly
WRITERS
Contributing Writers Andrew Ricci • Suzette Brewer (Cherokee) • Lynn Armitage (Oneida Nation) Renae Ditmer (Chippewa) • Mark Fogarty • Clifton Cottrell (Cherokee) Debra Utacia Krol (Xolon Salinan Tribe) • Josh Robertson Mary Annette Pember (Chippewa) • Mary Belle Zook (Citizen Potawatomi Nation)
ADVERTISING & EVENTS
Event Director Yvonne Schaaf (Salt River Pima/Mojave/Quechan) - yvonne@nativebusinessmag.com Advertising Director Janee' Doxtator-Andrews (Oneida) - advertising@nativebusinessmag.com
FO LLOW U S
@nativebusinessmagazine
@nativebizmag
@nativebizmag
@nativebusinessmagazine
NATIVE BUSINESS MAGAZINE
12819 SE 38th Street, #111, Bellevue, WA 98006 (425) 615-6400 | info@nativebusinessmag.com | www.nativebusinessmag.com ©2019 Native Business Magazine is published by Native Business, LLC, all rights reserved. Native Business is a monthly advertising magazine. All contents are protected by copyright and may not be reproduced without written consent from the Publisher. The advertiser is solely responsible for ad content and holds Publisher harmless for its advertising content and any errors or omissions.
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LETTER FROM THE PUBLISHERS
Infrastructure
is the backbone of economy and business.
PHOTOS BY WHITNEY PATTERSON PHOTOGRAPHY
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trategic investment in infrastructure creates a foundation for long-term growth. It drives and accelerates economic development, and opens doors to outside investment and business partnerships that provide reservation jobs. Without infrastructure, our communities are unable to thrive and money “leaks” off reservations, and border towns often capture the revenues. When it comes to Tribal infrastructure and prosperity, the Winnebago Tribe is a shining example of success. Native Business Magazine spoke with Ho-Chunk, Inc. CEO Lance Morgan, our March cover subject, about the forethought required for Ho-Chunk, Inc. to scale economic development. By making long-term, asset-oriented investments off-reservation, Ho-Chunk, Inc. funneled revenue into socioeconomic efforts on reservation, and effectively turned a big prairie in Nebraska into a thriving hub for business, jobs and community. Morgan details the value of master planning and how HoChunk Village deliberately integrates housing with the business, cultural and recreational elements necessary to sustain a healthy community and workforce. Our March issue examines infrastructure assets ranging from roads and buildings to legal frameworks and sovereign protection, broadband, data, utilities, telemedicine, insurance and more. But before technological infrastructure, we must consider a fundamental need: roads — constructing roads, maintaining roads and funding road repair. Our feature “The Road to Nowhere” paints a picture of the dire road conditions crippling some reservation economies. The stagnancy of never-paved roads stifles hope and opportunity for change and advancement, and dangerous conditions threaten public safety. But even Tribal Nations perceived as relatively wealthy are faced with a Catch-22 of financing prohibitively expensive road restoration, while fighting unjust dual taxation. It costs the Mandan Hidatsa and Arikara (MHA) Nation three to $3.5 million to pave only one mile of road on the Fort Berthold Indian Reservation, where tractor-trailers hauling thousands of gallons of Bakken crude are decimating reservation roads not built to withstand that kind of heavy traffic. Over the past decade at Fort Berthold, traffic fatalities have increased five-fold. We speak with MHA Nation Tribal Chairman Mark N. Fox about the impact of ancillary costs. “A billion here, a billion there–it goes fast,” he says. Beyond roads, in the 21st century, broadband is necessary infrastructure. Native Business interviews Andrew Metcalfe, the founder, CEO and president of Native Network, about his bold vision to connect as many of the 573 federally recognized Tribes with a fiber optic network as possible, creating a national footprint of online Tribal Nations. He also imagines equipping Tribes with the infrastructure to host data centers or call centers for the country's biggest dot-com businesses. In a separate article, Native Business considers the high capital costs of building data centers and the slow but worthwhile return on investment. We spotlight Data Holdings, the Forest County Potawatomi Tribe's $36
million data center in Milwaukee, and the Passamaquoddy Tribe of Indian Township, which plans to build a $25 million data center powered by hydrogen. At Native Business, we regularly strive to showcase how privately owned businesses on reservations pave the way to innovative and stronger economic climates. We interview JC Seneca, founder of Six Nations Manufacturing, Native Pride Travel Plaza and BUFFALO Cigarettes, about upholding sovereignty in the highly contested tobacco industry. Seneca shares his entrepreneurial journey from the 90s to today, employing 100plus people through his three enterprises on Seneca Nation territory. Native Business also addresses a pivotal issue impeding business and stifling economic development across Indian Country: dual taxation. Tribal government leaders including MHA Nation Chairman Fox are tackling the problem head-on, pushing to reduce state taxation of energy and resource development on reservations. If we could leave you with one final thought, it would be that economic vision and readiness are inherent to infrastructure sustainability and growth. Building physical, digital and legal structures is the first step toward growth and attracting outside investment. Our March issue identifies the ultra important role that strategic master planning and infrastructure development plays in achieving long-term economic success in our communities. Now, more than ever, Indian Country must be intentional in developing its infrastructure so that it bears the weight for our generations to come.
Onward, GARY DAVIS Publisher
CARMEN DAVIS
Publisher & Executive Editor
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MORGAN
PHOTO BY AP PHOTO/NATI HARNIK
LANCE
on
Ho-Chunk, In Lance at the groundbreaking ceremony for the new mixuse commercial and residential buildings at Ho-Chunk, Inc.’s Flatwater Crossing master-planned community in South Sioux City, Nebraska, Dec. 5, 2018.
PHOTO COURTESY HO-CHUNK, INC.
PHOTO COURTESY HO-CHUNK, INC.
25-YEAR HISTORY OF GROWTH
Tenth graders in the Winnebago Public School Academy, a projectbased classroom where students take advanced-level courses, visited the Ho-Chunk, Inc. corporate office in December 2018. They learned about the company through a scavenger hunt and discussion with CEO Lance Morgan.
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PHOTO COURTESY HO-CHUNK, INC.
nc.’s
An aerial overview of Ho-Chunk Village
From Building a Company to Building a Village
L
By Andrew Ricci
ance Morgan was 25 years old when he was tasked with taking $9 million and figuring out how to diversify the Winnebago Tribe of Nebraska’s economy away from gaming. Now, two and a half decades later, the company that Morgan started with one employee and $9 million in seed capital is Ho-Chunk, Inc., a Tribal success story that currently boasts annual revenues of roughly $250 million, more than a thousand employees, and multiple subsidiaries across four major division areas. Morgan didn’t spend his entire life on the reservation. His father was a non-Indian farmer and his mother was a Tribal member, but when they got married in the 1960s, it was a little bit controversial, he told Native Business Magazine. So, they left. His father went to Vietnam, and when he returned, they settled in Omaha, where
Morgan’s grandparents eventually moved as well. “We had a little Tribal thing going on in the city, like a lot of people did,” Morgan said in an interview. “But gradually, my entire family moved back to the reservation, including myself.” Morgan joined the Army Reserves in order to pay for college at the University of Nebraska, where he did well enough to get a full scholarship to Harvard Law School. After graduation, he started a successful legal career at Dorsey and Whitney, a prominent law firm in Minneapolis. At that time, back on the reservation, the Winnebago Tribe was going through a dispute with its casino’s management company. “We were paying our management company 40 percent,” Morgan said. “We put up most of the money for the casino, and they
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THE ROAD TO By Suzette Brewer
NOWHERE
Substandard road conditions on reservations across the United States impact the quality of life for Tribal citizens and inhibit the economic development and selfdetermination of Tribal Nations.
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PHOTO BY SUZETTE BREWER
How the Lack of Adequate Transportation Systems Hinders Tribal Economic Development
PHOTO BY BRIAN LEDDY /GALLUP INDEPENDENT LICENSED VIA AP
A
PHOTO BY KEN CEDENO/ GETTY IMAGES VIA CORBIS NEWS
rlando Teller’s earliest memory of the roads on the Navajo Nation is riding to market with his grandparents in their ’46 Ford pickup truck on the jagged, unpaved trails of Del Muerto, Arizona in the late 1970s. “I always remember that truck,” says Teller. “It was this big, heavy tank on a very rut-riven, rocky dirt road with my dad’s parents. It was always a very difficult drive― — especially if it had rained or if there was bad weather.” Today, some 40 years later, Teller says the roads in Del Muerto are exactly the same as they were when his grandparents lived there. “It hasn’t changed at all,” says Teller, who is now the deputy director of the Navajo Nation Department of Transportation. “In fact, we still have thousands of miles of roads on the reservation that are unpaved and sometimes impassable, which we are working hard to address. But there is a lot of unmet need in regards to roads, bridges, school bus routes and airports, and all of it has an impact on our Tribal members.” Teller’s anecdote is recognizable to nearly every land-based reservation Tribe in the United States, many of whom continue to struggle with a lack of paved roads and basic transportation infrastructure like curbs, sidewalks, signage, guardrails and proper drainage. This dearth impacts the quality of life and hinders crucial economic development that mainstream communities take for granted. With approximately 17.5 million acres covering 27,000 square miles in Arizona, New Mexico and Utah, the Navajo Nation is the largest land-based Tribal Nation in the country. Slightly larger than West Virginia, the Navajo Nation’s roadway inventory includes 14,221 miles of roads with a patchwork of ownership between the Bureau of Indian Affairs (BIA), the Tribe, the three states and the counties, according to the Navajo Nation Department of Transportation.
On the Navajo Nation, only 23 percent — or 3,270 miles — are paved. By comparison, West Virginia, which is the fourth poorest state in the country with a poverty rate of 17.7 percent, has approximately 27,000 miles of paved roads, according to the West Virginia Annual Roadway Statistics Report. And because of the high desert topography of the Navajo reservation, factors like rain, snow, floods, dust storms and landslides render many of these routes hard to navigate and sometimes impassable. These treacherous situations affect public safety, the delivery of essential services, and access to employment and healthcare. Moreover, it inhibits access to education for the thousands of school children in Navajo communities where road conditions have created transportation-related attendance barriers throughout the reservation. Taken together, these factors, say Tribal leaders, present a major challenge to the development of the Navajo Nation economy. Out of Sight, Out of Mind The lack of basic infrastructure in Tribal communities has been an ongoing problem since the establishment of the reservation system by the federal government in the
mid-1800s. As the expansion of wagon trails, railroads and white settlers exploded westward, Tribes were forced onto reservations that were, in reality, little more than prison camps — substandard, inarable parcels that were located on flood plains, in dry deserts, or rocky, untillable hill country mostly unfit for food production. When food, medicine, blankets and housing promised to Tribal communities never materialized, they were forced to live in cramped, cold, unsanitary conditions that led to hunger and disease. Under 24-hour armed military guard, Tribal members were forbidden from leaving to hunt or find food. This led to riots and uprisings at reservations across the Northern Plains and the Upper Midwest. In the case of Fort Peck, Montana, over 300 Assiniboines died of starvation in the winter of 1881. Since then, Tribal leaders, historians and advocates across the country contend that the consequence of early policies intended to geographically and politically isolate Indian Tribes has also crippled Native economies to this day. And one of the centerpieces to achieving those ends was limited access to road systems on and near Indian lands. “Economies revolve around the movement of people and goods,” says J. Eric Reed (Choctaw Nation), a Dallas-based attorney and Native historian. “Tribes traveled over vast distances and had very successful trading alliances. There was no such thing as poverty among the tribes before European settlement.” He says that limiting access to transportation was used to control and marginalize the Tribes in a variety of ways during the territorial expansion of the United States in the 1800s, similar to the townships in South Africa. As the U.S. population went from 5 million in 1800 to almost 25 million in 1850, Manifest Destiny became the justification for the forced acquisition of Indian lands. “The Tribes were intentionally isolated and cut off from access to any thoroughfare from which they would benefit in any way, MARCH 2 0 1 9
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GTEC provided design and construction management services to enhance the arrival and parking experiences at Turtle Creek Casino and Hotel, a primary tourism draw for Traverse City, Michigan.
PHOTO GRAND TRAVERSE ENGINEERING & CONSTRUCTION
PHOTO COURTESY TEAM ELMER’S
PHOTO COURTESY BAY SHORE STEEL WORKS
In January, GTEC added Bay Shore Steel Works (BSSW), a longtime manufacturer of steel and aluminum, to its portfolio of Tribal 8(a) companies.
TRIBAL CONSTRUCTION ENTERPRISES
Cash In on Lucrative Federal Contracting By Lynn Armitage
T
he United States government doles out $500 billion each year to buy the goods and services it needs to keep the country running smoothly. That’s a staggering amount of money enriching businesses fortunate enough to land these coveted contracts. And thanks to the Tribal 8(a) Program, Tribal enterprises can dip into the honeypot of government contracting, too. According to the Congressional Research Service, the Tribal 8(a) Program is a special provision to the Small Business Investment Act of 1958 that gives eligible Alaska Native Corporations, Tribes, Native Hawaiian Organizations and Community Development Programs an exclusive stronghold to compete more advantageously in the federal
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marketplace through set-aside (only certain contractors may compete) and sole-source (without competition) awards. The idea behind this business development program, managed by the Small Business Administration, is that it gives qualifying Tribal enterprises the opportunity to generate much-needed revenue to fight poverty and promote economic development in their disadvantaged communities. As the Native American Contractors Association (NACA) says, “The Native 8(a) Program is a hand up, not a hand out.” Both NACA and the National Congress of American Indians acknowledge that the Tribal 8(a) Program has a few legislative bugs to
PHOTO COURTESY FOUR TRIBES CONSTRUCTION
Four Tribes Construction is currently working on a $12 million project at Arlington National Cemetery refurbishing worn-out roads.
TIPS ON LANDING TRIBAL 8(A) CONTRACTS The first step to winning government contracts is to get certified as a Tribal 8(a) business through the Small Business Administration (certify.SBA.gov). Once you meet the requirements, consider advice from Natives who have done it successfully: GTEC was hired to provide construction management services to reconstruct part of the M-72 corridor — a major roadway in the heart of Michigan.
PHOTO COURTESY FOUR TRIBES CONSTRUCTION
work out―including reforms that will make the program accessible to more Tribes. Even so, some Tribal businesses are already in lockstep with the rules and regulations of federal contracting and are profiting quite nicely. Native Business Magazine spotlights two of them. If You Build It, Profits Will Come As Doyle Lowry says, “The U.S. government buys everything. You can sell them thumbtacks, if you have a company to do it.” Instead of thumbtacks, Lowry chose construction. As the CEO of Four Tribes Construction Services, a general contracting firm owned by the Susanville Indian Rancheria (SIR) in California, Lowry oversees tens of millions of dollars in federal construction jobs. In fact, 98 percent of Four Tribes’ work is with the federal government, which is why the construction company is headquartered in Maryland. “We need to be near the decision makers,” Lowry explains of the Tribe’s coast-to-coast wingspan. Last year, Four Tribes signed more than $40 million in federal construction contracts. Its best year ever. Doyle Lowry, CEO of Four Tribes “This year, we have brand-
Thomas Wilbur, CEO of Grand Traverse Economic Development: • Hire people experienced in the federal arena who understand business, marketing and financials. “It's a complicated business, but very lucrative if you know how to navigate it.” • Separate yourself from the business and Tribal politics. “Don't let emotions get in the way.” • Once you’re in, you must deliver with each project. “A bad performance is the kiss of death.” • Be patient. “It’s a long-term investment that requires a longterm strategy.” Doyle Lowry, CEO of Four Tribes Construction Services: • Get ahead of contracts before they are published online. “Set up a meeting with an SBA representative in your chosen expertise who will tell you about projects coming down the road.” • For construction contracting, it’s imperative to find a bonding company to insure each project. “Bonding is everything to construction. These companies start out conservatively but will increase your bonding rate the longer you work together. We are bonded for $35 million per project.” • When setting up the business, Tribal economic boards must be independent from election boards. “It’s hard for some Tribes to give up that control, but totally worth it.”
new construction projects ranging from $500,000 to more than $20 million,” including a current $12 million project refurbishing roads at Arlington National Cemetery, the SIR Native shares. “It has really been a great way to create revenue for the Tribe and fund social programs that help our people.” Four Tribes’ first client was the Army Corps of Engineers in South Carolina. It built a gravel parking lot and remodeled a secure facility at Joint Base Charleston to the tune of $800,000. “In the construction world, you live and die on your reputation, so you gotta do that first one right.” After that initial success, contracts started rolling in regularly. The Corps remains Lowry’s largest client today. This federal contracting formula has worked so well that the SIR Tribe has developed six more Tribal 8(a) companies since Lowry
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“I don’t think that anywhere else in the world 19 sovereign Nations have come together and, for the betterment of all 19, formed another government as a political subdivision,” Canfield said.
19
When
The interior of the Starbucks at Avanyu Plaza features Puebloinspired architecture and handmade Pueblo pottery and art.
PUEBLOS UNITE
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T
he land once home to the Albuquerque Indian School (AIS), a boarding school that operated 1881-1981, is today the site of a thriving business and cultural complex owned by 19 Pueblos of New Mexico. The story of how the Pueblos jointly built a sovereign, economic ecosystem in Albuquerque begins back in 1969 — the first time that the 19 Pueblos petitioned the federal government to convey land to Pueblo ownership. The Pueblos sought to turn an unused portion of AIS property into a cultural center. Feasibility studies, economic assessments and appraisals were conducted. Letters of support from municipal, state and federal legislators were garnered. The Pueblos identified the specific ways they intended to develop the land to create economic and cultural opportunities that would benefit tourism and commerce for the 19 Pueblos, City of Albuquerque and the State of New Mexico. Fast forward to 2019, and the 19 Pueblos have successfully petitioned for four con-
PHOTO BY ASHLEY BROWNING, COURTESY IPMI
ECONOMIC DEVELOPMENT OPPORTUNITIES ARE EXPONENTIAL
By Native Business Staff
INFRASTRUCTURE
PHOTO BY CAITLIN CANO, COURTESY IPMI
veyances of federal land to Tribal land. Together, they’ve gradually acquired nearly 80 acres of land for cultural and economic development. “For each land transfer, the 19 Pueblos committed to not building casinos on the property. That sped up the process quite a bit,” said Michael Canfield (Pueblo of Laguna), President and CEO of the Indian Pueblo Cultural Center, Indian Pueblos Marketing, Inc., and the Indian Pueblo Federal Development Corporation (IPFDC). “The lands became Tribal lands the min-
Above: In early 2012, Michael Canfield (Pueblo of Laguna) was named President and CEO of three corporations owned by the 19 Pueblos of New Mexico: the Indian Pueblo Cultural Center, Indian Pueblos Marketing, Inc., and Indian Pueblo Federal Development Corporation.
PHOTO COURTESY IPMI
Below: IPMI serves as both landlord and tenant of the nearly 5,000-square-foot Starbucks Coffee — the largest Starbucks in the Southwest.
ute the transfers were complete,” Canfield continued. “You have to go through Congress, and it has to be signed by the President, when you transition land from federal ownership into Tribal ownership.”
Back to 1976, the Indian Pueblo Cultural Center (IPCC) opened its doors to the public. “As with any start-up, we were challenged with figuring out: How do we make money? Where do we make money? What kind of services do we provide, and what kind of facilities do we need?” Canfield said. When the Albuquerque Indian School shuttered in 1981, the Pueblos seized their opportunity. The dormant, former school property fell into disarray, becoming a refuge for vandalism and homeless people. The 19 Pueblos petitioned the U.S. for its second land conveyance of the remaining 44 acres of AIS property. Situated on the east side of 12th Street, that land (and then some) is today a bustling office park and hospitality area known as Avanyu Plaza. (IPCC is just across the street.) With visions of building a vibrant cultural and business corridor, the Pueblos formed a for-profit organization, Indian Pueblos Marketing, Inc. (IPMI). (Central to IPMI’s purpose was stimulating revenue to cover IPCC’s operating costs.) The Pueblos appointed one Board of Directors to oversee both corporations, IPCC and IPMI. The Board, limited to five members, is granted the authority to run IPMI like a business — with the ability to buy and sell assets and enter into debt. “That gave them the autonomy to be successful,” Canfield said.
For starters, IPMI opened a convenience store and a smoke shop — two major economic drivers to this day. “We sell a lot of gas and a lot of tobacco products, and that helps us generate the revenue to do the cultural things that we are responsible for,” Canfield said. Eventually, two office buildings were built to house Bureau of Indian Affairs agencies as tenants of the Pueblos, beginning in 2004. The Pueblo-owned Holiday Inn Express held its grand opening in May 2005. “Our Holiday Inn Express is breaking all kinds of records,” Canfield said. “It’s in a great location. We’re right off I-40 and right near I-25, which is the major intersection in the state.” In September 2005, the 19 Pueblos debuted the Four Winds Travel Center and convenience store. In July 2010, the Pueblo Governors transferred management of the IPFDC to IPMI to Canfield, who served on the IPMI Board from 1995-2011. In 2012, Canfield was hired as President and CEO of the three corporations owned by the 19 Pueblos: IPCC, IPMI and IPFDC. All three entities continue to operate under one Board of Directors. “That entails a deep trust that stems from full transparency, positive audits, and general financial performance. That trust has been earned,” Canfield said. The Pueblos are currently receiving tax dollars through the 19 Pueblos District, but IPMI is not currently generating dividends, because profits are being used to complete the property master plan.
IPMI is continuously driving economic growth for the 19 Pueblos, the City of Albuquerque and State of New Mexico. Avanyu Plaza is anchored by the Indian Pueblo Cultural Center and the first Native American-licensed freestanding Starbucks in the nation. IPMI serves as both landlord and tenant of the nearly 5,000-square-foot Starbucks Coffee — the largest Starbucks in the Southwest. It opened in 2015, and features Pueblo-inspired architecture and handmade Pueblo pottery and art. That’s apropos for “Avanyu” Plaza; the Tewa word references the sacred water serpent at the heart of Pueblo culture. Next came a Pueblo entrepreneur-owned Laguna Burger, the restaurant Sixty-Six Acres, and a Domino’s Pizza. As previously mentioned, Avanyu Plaza also houses the Pueblo-owned Holiday Inn Express and two office buildings with federal tenants, includ-
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